Suppose that in January 2015 JC Productions had EPS of $1.65 and a book value of equity of $12.05 per share. Use the multiples approach to estimate JC's value based on the data from comparable firms given in the following table: a. Using the average P/E multiple from the table above, estimate KCP's share price.b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above?C. Using the average price to book value multiple in the table above, estimate KCP's share price.d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above?Average PE: 15.01Max PE: +51%Minumum PE: -42%Average Price/Book: 2.84Max Price/Book: +186%Minimum Price Book: -61%Entprise Vaule/sales: 1.06 (average)Entprise Vaule/sales: +106% (max)Entprise Vaule/sales: -56% (min)Enterprise Vaule/ Ebitda: 8.49 (average)Enterprise Vaule/ Ebitda: +27% (max)Enterprise Vaule/ Ebitda: -22% (min)
Suppose that in January 2015 JC Productions had EPS of $1.65 and a book value of equity of $12.05 per share. Use the multiples approach to estimate JC's value based on the data from comparable firms given in the following table:
a. Using the average P/E multiple from the table above, estimate KCP's share price.
b. What range of share prices do you estimate based on the highest and lowest P/E multiples in the table above?
C. Using the average price to book value multiple in the table above, estimate KCP's share price.
d. What range of share prices do you estimate based on the highest and lowest price to book value multiples in the table above?
Average PE: 15.01
Max PE: +51%
Minumum PE: -42%
Average Price/Book: 2.84
Max Price/Book: +186%
Minimum Price Book: -61%
Entprise Vaule/sales: 1.06 (average)
Entprise Vaule/sales: +106% (max)
Entprise Vaule/sales: -56% (min)
Enterprise Vaule/ Ebitda: 8.49 (average)
Enterprise Vaule/ Ebitda: +27% (max)
Enterprise Vaule/ Ebitda: -22% (min)
Suppose that in January 2015 JC Productions had EPS of $1.65 and a book value of equity of $12.05 per share. Use the mul
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
Suppose that in January 2015 JC Productions had EPS of $1.65 and a book value of equity of $12.05 per share. Use the mul
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!